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2000 FPDR

On July 19, 2000, the Portland City Council passed and referred the following measure to be decided by voters at the municipal General Election on November 7, 2000.
 
BALLOT TITLE:
 
CAPTION: Amends Charter; Changes Police Fire Disability and Retirement Board Composition.
 
QUESTION: Shall the composition of disability and Retirement Board be changed to add three citizen positions and delete three beneficiary positions?
 
SUMMARY: Section 5-201 (a) of the City Charter defines the composition of the Board of Trustees for the Fire and Police Disability and Retirement Fund. The Board is composed of eleven members: the Mayor, the City Auditor, the City Treasurer, the Police Chief, the Fire Chief, three active members from the Fire Bureau and three active members from the Police Bureau. This measure would change the composition of the FPD&R Board while maintaining the current size of the Board. Three citizen members would be added. The two positions held by the Police Chief and Fire Chief would be combined into one position they would share on a rotating basis. The active members elected from the Police Bureau would be reduced from three to two and the active members elected from the Fire Bureau would be reduced from three to two. The citizen members would be appointed thus: the Mayor to appoint one member; the elected members from the Police and Fire Bureaus to appoint one member; and the members of the FPD&R Board to appoint one member.
 
PROPOSED CHARTER LANGUAGE:
 
Charter of the City of Portland, Oregon
 
CHAPTER 5 FIRE AND POLICE DISABILITY, RETIREMENT AND DEATH BENEFIT PLAN
 
Section 5-201. BOARD OF TRUSTEES.
 
(a) Composition. This Chapter shall be administered by a Board of Trustees, which also shall supervise and control the Fire and Police Disability and Retirement Fund and the Reserve Fund. The Board of Trustees shall be composed of eleven members who shall be the following: The Mayor (who shall act as Chairperson); the City Treasurer (who shall act as Treasurer); the City Auditor (who shall act as Secretary); one position to be shared by the Chief Engineer of the Bureau of Fire (Chief of the Bureau of Fire) [;] and the Chief of Police on a rotating basis as established by rule; [and three] two Active Members serving in the Bureau of Fire, to be elected to the Board by all Active Members in the Bureau of Fire; [three] two Active Members serving in the Bureau of Police, to be elected to the Board by all Active Members in the Bureau of Police and three citizens of the City of Portland who are not active or past members of the Fire and Police Disability and Retirement Fund and have not been employed as a City of Portland firefighter or police officer. One citizen who shall not be a member of any public pension fund shall be nominated by the Mayor and appointed by the Council, one citizen shall be appointed by the elected Board members of the Bureau of Police and the Bureau of Fire, and one citizen shall be appointed by a majority of the members of the Board. In the absence of the Mayor, the City Treasurer and/or City Auditor, the following persons shall be entitled to be substituted on the Board of Trustees to all intents and purposes as if the named officer were present: Whoever is empowered to act in such officer's absence in the respective office; or whoever is designated from such office to serve regularly on the Board in such officer's place; or any Council member designated by the Mayor to serve for the Mayor. In the absence of the Mayor, whoever is empowered to serve for the Mayor shall serve as Chairperson Pro Tempore. All members of the Board shall receive orientation to the Board and serve without compensation. References in this Chapter to the "Board" shall mean the Board of Trustees created by this Section.
 
(b) Election of Board Members. Elections shall be under the supervision of the City Auditor and shall be held in the month of June, at which election one Active Member from the Bureau of Fire and one Active Member from the Bureau of Police shall be elected to the Board for three-year terms to succeed the members whose terms expire the month following the time of said election. Members so elected in June shall take office the following July. Similar elections for unexpired terms shall be held to fill other vacancies within thirty days after they occur. Elections shall be held in a manner prescribed by the rules and regulations adopted by the Board, which must be in writing and filed with the Secretary of the Board. A Board member who ceases to be an Active Member may complete the remainder of the Board member's term. The Board shall keep a record of all of its proceedings and hold regular meetings each month, at a time to be set by the Board. Seven members shall constitute a quorum at any and all meetings of the Board and the affirmative vote of a majority of a quorum shall constitute an action of the Board.
 
(c ) Appointment of Board Members. The appointments of the three citizen members shall be as follows: for the Council's appointment, an initial one year term and every three years thereafter; for the elected Board members of the Bureau of Fire and Police appointment, an initial two year term and every three years thereafter; for the Board's appointment, an initial three year term and every three years thereafter. The appointments shall be made in the month of June, at which time citizen members shall be appointed to succeed the member whose term expires in the month following the time of said election. Members appointed in June shall take office the following July. Appointments for unexpired terms shall be made to fill vacancies within thirty days after they occur. The Board may set rules for attendance and any member may be removed by the Board for failure to abide by the attendance rules of the Board.
 
[(c)] (d) Rehabilitation Subcommittee. The Board shall have a Rehabilitation Subcommittee consisting of [four] five Board members: the Mayor, or the person serving on the Board in place of the Mayor; the City Treasurer, or the person serving on the Board in place of the City Treasurer; one of the Members elected from the Bureau of Fire; and one of the Members elected from the Bureau of Police and one citizen member. [Such elected] The elected and citizen [M]members shall be chosen by the Board. The Rehabilitation Subcommittee shall oversee the vocational rehabilitation of disabled Members and determine whether such Members are capable of other employment. The Rehabilitation Subcommittee may, by a majority vote of its members, exercise the authority of the Board to suspend or reduce benefits under Paragraph 5-306(c)5 or Subsection 5- 307(b). Any Member adversely affected by a decision of the Rehabilitation Subcommittee to reduce or suspend benefits has the right of appeal to the full Board.
 
(e) Indemnity. The members of the Board and the Fund Administrator appointed under Subsection 5-202(b) shall be indemnified by the Fund from any claim or liability, including the cost of legal defense by counsel approved by the City Attorney, that arises from any action or inaction in connection with their functions under this Chapter subject to the following: 1. Coverage shall be limited to actions taken in good faith that the person reasonably believed were not opposed to the best interest of the Fund. 2. Coverage shall be reduced by the extent of any insurance coverage.
 
Section 5-401. Amendment of Chapter.
 
(a) Effective Date. Chapter 5 shall be amended and restated as se forth in Articles 1 through 3 above and this Article 4, effective July 1, 1990. These amended provisions shall apply to all persons who become Members, and to the surviving spouses and Dependent Minor Children of such Members, after the date they are enacted. These amended provisions also shall apply to all other Members, and to the surviving spouses and Dependent Minor Children of such Members, except as provided in Subsections (b) and (c).
 
(b) Persons Receiving Benefits. The benefit rights of Members, Surviving Spouses and Dependent Minor Children actively receiving pensions or benefits on January 1, 1990 shall be controlled by Sections 5-113 through 5-123 and 5-126, set out in Article 5 of this Chapter, and by the Supplementary Retirement Program described in Subsection (d), instead of by Article 3, except as follows:
 
1. Death benefits payable to a spouse shall continue to be paid regardless of whether the spouse remarries.
 
2. The Surviving Spouse of a Member who dies after June 30, 1990 and after retirement and who has been married to the Member continuously for the 12-month period prior to death shall receive the death benefit provided by Section 5-118 regardless of not having 5 continuous years of marriage before retirement.
 
3. The Surviving Spouse of a Member who had a nonservice-connected disability, retired and then dies after June 30, 1990 shall receive the death benefit provided by Section 5-118 if the Member had 10 or more Years of Service.
 
4. The Board may permit a Member receiving disability benefits on January 1, 1990 to make the election described in Subsection (c) at the same time as other Members if the Member's disability is expected to be of less than one year in duration.
 
5. A Member receiving disability benefits on January 1, 1990 who was not permitted an election under Paragraph 4, who subsequently returns to service as an Active Member in the Bureau of Fire or Police capable of performing full duty without limitation and who earns two more Years of Service under Subsection 5-302(a) shall be given the opportunity, upon completing such two Years of Service, to make the election described in Subsection (c). Upon making such election, the Member shall receive a refund of the Member contributions paid during such two Years of Service.
 
(c) Election. The provisions of Article 3 shall apply to persons who became Members before the date of enactment and who are not described in Subsection (b) only if such Members make an irrevocable election to have them apply. The election shall be made on forms and under procedures established by the Board. Benefits for a Member who makes the election, and for the Surviving Spouse and Dependent Minor Children of such a Member, shall be determined under Article 3 and not Article 5. Benefits for a Member who does not make the election, and for the Surviving Spouse and Dependent Minor Children of such a Member, shall be determined under Article 5, as modified by Subsection (b), and by the Supplementary Retirement Program described in Subsection (d), and not under Article 3. A Member who retires between January 1, 1990 and June 30, 1990 shall choose at retirement the level of death benefit after retirement under Section 5-310, which shall apply starting July 1, 1990 unless the Member does not make the election described in this Subsection. A Member who makes the election and starts receiving retirement or disability benefits between January 1, 1990 and June 30, 1990 shall start receiving benefits determined under Article 3 effective July 1, 1990.
 
(d) Supplementary Retirement Program. The benefits provided by the Supplementary Retirement Program created by Ordinance No. 136977, and amended by Ordinance No. 152182, of the City of Portland shall be paid from the Fund pursuant to this Chapter effective July 1, 1990 to:
 
1. Persons described in Subsection (b); and
 
2. Members described in Subsection (c) who do not make the election provided therein, and the Surviving Spouses and Dependent Minor Children of such Members.
 
(e) Repeal of Prior Sections. Except for the continued applicability of Sections 5-113 through 5-123 and 5-126 as provided in Subsections (b) and (c), the provisions of this Chapter as previously in effect are repealed and superseded.
 
(f) Continuity of Board. Notwithstanding anything expressed or implied in the amendments to this Chapter enacted in 1989, the members of the Board duly elected and serving as such immediately prior to the effective date of such amendments shall continue after the effective date of such amendments to serve as members of the Board for the remainder of the term for which they were elected.
 
(g). Notwithstanding any other provision of law or this Chapter, Chapter 5 shall be amended and restated as set forth above in Articles 2 and 3 and this Article 4, effective July 1, 2001, and said amendments shall apply to all matters existing or arising on or after July 1, 2001 regardless of the date of injury or the date the matter is presented, and this amendment is intended to be fully retroactive so as to apply to all Members whenever sworn, except that the amendments shall not apply to any matter which has received Board approval on or before the date these amendments are approved by the voters.
 
(New language in bold, deleted language italicized and in brackets.)

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